New Trends in Home Owners Insurance for Replacement Cost Dwelling Coverage.....
There is a trend happening in Harris County regarding Tenant Occupied Homes, especially wood frame homes. To get replacement cost on a tenant occupied home in Harris County and the home is more than 20 years old, the following should be 100% completely replaced:
1. Roof
2. Wiring
3. Plumbing
4. A/C
Proof will be required by city permits, a contractors letter or inspection report.
If none of the above, or at least 3 out of the 4 haven't been done, then the purchaser / owner of the home will qualify for Actual Cash Value Dwelling Coverage on the home only. In other words, the replacement cost will be determined and depreciated. The same will apply on repairs. The repairs will be determined at 100%, depreciation taken and the deductible applied.
If a home is on pier and beam, the crawlspace must be enclosed by a solid material (with the proper venting per codes) to as close to the ground as possible. Companies are quickly moving from insuring or at least providing replacement cost on homes with open crawlspace, either owner or tenant occupied.
If you have any questions about this new trend please let me know. I hope you have found this information helpful!
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